New York Laws
Article 10 - Retail Instalment Sales Act
408 - Credit Upon Anticipation of Payments.

§ 408. Credit upon anticipation of payments. 1. Notwithstanding the
provisions of any contract or obligation to the contrary, any buyer may
pay it in full at any time before the maturity of the final instalment
of the time balance thereof and if he does so shall receive and be
entitled to receive a refund credit thereon and if the contract or
obligation included an amount for group credit life insurance a further
refund credit thereon for such anticipation, whether or not the maturity
of the time balance of the contract was accelerated by the holder by
reason of the buyer's default.

2. The amount of any such refund credit shall be determined according
to a generally acceptable actuarial method.

If the credit service charge imposed on the retail instalment contract
or obligation is computed pursuant to subdivision four of section four
hundred four of this article, the contract or obligation may be prepaid
in full without penalty.

3. Where the amount of the credit for anticipation of payment is less
than one dollar no refund need be made. Where the earned credit service
charge amounts to less, there may be retained an amount equal to the
minimum credit service charge applicable.

4. The amount of the further refund credit for group credit life
insurance shall be equal to the excess of the amount included in the
contract for group credit life insurance over the premiums paid or
payable by the holder of the contract for such insurance, if such
premiums were paid or payable periodically, or the refund for unearned
group credit life insurance premium paid or payable in a lump sum,
provided that no such further refund credit need be made if the amount
thereof would be less than one dollar.

5. In the event (i) the maturity of a contract or obligation is
accelerated due to the default of the buyer or otherwise and judgment is
obtained, or (ii) repayment is made pursuant to group credit life
insurance, the buyer or his legal representative, as the case may be,
shall be entitled to the same refund credits as if the contract had been
prepaid in full on the date of acceleration or repayment.